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Joined Jan 2006
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Status: Channeling between Idiot and Savant
|46 Posts
Nice to see someone using point and figure. Not actually using it myself at the moment, but I'm currently reading Jeremy Du Plessis' great book on the subject, Definitive Guide to Point and Figure. He's got the best explanation of plain vanilla technical analysis (specifically support and resistance) that I've read anywhere.
I didn't know Amibroker offered PnF charts. I've tried Dukoscopy and Oanda's FXLab version, but both are pretty useless. Question: I see you've got the ATR listed; how are you determining your box size?
Anyway, just wanted you to know someone is appreciating your post, and I do like your blog as well. Hope to see more.
Ed
Indicators are to Price as Newspapers are to Bloomberg.
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Joined Sep 2006
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Status: momentum catcher
|213 Posts
In wha way is PaF chart better than candlestick chart for example? What is the advantage of using it? I've gone through this in investments class, but our instructor was a lousy technical analyst who made money from teaching and did not believe that technical analysis can make you money. So if someone with the knowledge could explain please.
Joined Nov 2005
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Status: EURUSD Quant FREAK
|3,197 Posts
P & F for stocks... definitely.
P & F for forex.... er, it isn't a traditional "market".... it is governments competing in a global economy.... so many news releases creating randomness.... I think it will fail.
Nice to see someone using point and figure. Not actually using it myself at the moment, but I'm currently reading Jeremy Du Plessis' great book on the subject, Definitive Guide to Point and Figure. He's got the best explanation of plain vanilla technical analysis (specifically support and resistance) that I've read anywhere.
I didn't know Amibroker offered PnF charts. I've tried Dukoscopy and Oanda's FXLab version, but both are pretty useless. Question: I see you've got the ATR listed; how are you determining your box size?
Anyway, just wanted you to know someone is appreciating your post, and I do like your blog as well. Hope to see more.
Ed
Hi ED,
Thanks for the positive feedback. Amibroker does not have built in PnF charts but has the option to plot an array with point and figure style. PnF chart is coded as any other indicator.
I use the ATR to make sure the box size is not to small, and that a column of 3 boxes comprises generally more than 1 bar. I scan the market for patterns using flexible box size ranges but usually :
interval = 5min: 5 - 30 pip/box range.
interval = 1h : 20 - 60 pip/box range.
Filtering is performed after visualisation of identified pattern identified.
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In wha way is PaF chart better than candlestick chart for example? What is the advantage of using it? I've gone through this in investments class, but our instructor was a lousy technical analyst who made money from teaching and did not believe that technical analysis can make you money. So if someone with the knowledge could explain please.
Pnf filters the noise and does not use timescale. This makes it more focused on price action producing clearer support /resistance levels , breakout patterns and entry / stop loss levels.
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P & F for stocks... definitely.
P & F for forex.... er, it isn't a traditional "market".... it is governments competing in a global economy.... so many news releases creating randomness.... I think it will fail.
That might make FX difficult to trade but not PnF useless.
I am trying to use Point and figure for short term trading on Forex. How do you set box size and reversal for various currency pairs also what time frame do you trade on or do you adjust by different box size?
Your blog with charts is very good and certainly food for thought.
I don't think I understand the value of PnF. It seems like less info than you'd get from a candle. What are the benefits of it over candles?
edit: sry I see you did somewhat answer that question already.
Ignored
PF filters out a lot of "information". That is the purpose.
Mathematically, Candlesticks and Candlesticks patterns express the relationship between O,H,L,C of n-units of time periods,
while PF expresses the relationship between highs and lows for n-amount of price movement .
Depending on the type of information one is seeking to pop out, he can choose between PF or Candle. They do not exclude each other.
I am trying to use Point and figure for short term trading on Forex. How do you set box size and reversal for various currency pairs also what time frame do you trade on or do you adjust by different box size?
Your blog with charts is very good and certainly food for thought.
Divad
Ignored
Thanks David.
I do not use any preset value for box size. But If you use a very small box size the PF chart would show nothing but the chart bars in "X" and "O".
I find ATR() to be a good reference.
BoxSize = any_value > * ATR(free to chose period) / reverse.
Originally the price comes in form of ticks , if compressed based on time period you get Bars if compressed based on movement you get PF.
If there are no tick data available Box Size is adjusted by time frame not the other way around.
PF filters out a lot of "information". That is the purpose.
Mathematically, Candlesticks and Candlesticks patterns express the relationship between O,H,L,C of n-units of time periods,
while PF expresses the relationship between highs and lows for n-amount of price movement .
Depending on the type of information one is seeking to pop out, he can choose between PF or Candle. They do not exclude each other.
Ignored
Thanks for the info. I'll be following your thread to see if there's anything I might learn to add to my own trading. Take care.
